My Size (MYSZ) Financials

My Size’s latest results show strong year-over-year revenue growth but continued financial strain. In Q1 2026, revenue rose to $2.39 million from $1.48 million in Q1 2025, a 61.9% increase. However, the company remained deeply unprofitable and continued to consume cash, leaving investors dependent on additional financing and improved operating performance.

• Revenue momentum improved: Q1 2026 revenue increased 61.9% year over year. Revenue also exceeded Q3 2025’s $2.57 million on a sequentially comparable basis, although it declined from Q4 2025’s $3.31 million.
• Gross margin recovered: Gross profit was $940,000 in Q1 2026, representing a 39.3% gross margin compared with 28.4% in Q1 2025 and 13.5% in Q4 2025. This suggests the company’s product mix or pricing improved from the second half of 2025.
• Operating expenses declined sequentially: Total operating expenses fell to $2.35 million in Q1 2026 from $3.19 million in Q4 2025, led by a substantial reduction in SG&A expense. Marketing expense was broadly stable at $890,000.
• Current assets continue to exceed current liabilities: At March 31, 2026, current assets totaled $6.19 million versus current liabilities of $3.67 million. Including restricted cash, the company had approximately $910,000 of cash and restricted cash.
• Debt financing increased liquidity in the quarter: My Size issued $400,000 of debt and repaid $137,000, producing $263,000 of net debt financing. This helped partially offset operating cash burn but increased the company’s reliance on creditors.
• Amortization and other noncash adjustments reduced the difference between accounting and cash losses: Q1 2026 included $173,000 of depreciation and amortization and $47,000 of other noncash adjustments. These items helped operating cash flow compare somewhat favorably with the reported net loss, although cash usage remained substantial.
• Losses remain significant: My Size reported a $1.48 million net loss in Q1 2026, or a $1.48 million loss attributable to common shareholders after adjustments. The company has reported losses in each of the provided quarters.
• Operating cash flow deteriorated year over year: Cash flow from operating activities was negative $2.07 million in Q1 2026, compared with negative $1.27 million in Q1 2025. The quarterly burn rate was also elevated relative to the negative $500,000 recorded in Q3 2025.
• Cash reserves have fallen sharply: Cash and equivalents declined to $654,000 at March 31, 2026, from $4.49 million at September 30, 2025. The company reported a $1.65 million quarterly decrease in cash despite $453,000 of financing inflows.
• Liquidity depends heavily on working-capital management and external funding: Inventory reached $3.41 million, while accounts payable totaled $2.97 million. In addition, total debt rose to approximately $1.18 million from $933,000 at September 30, 2025, and weighted average basic shares increased to 4.79 million from 2.09 million in Q1 2025, highlighting both financing risk and potential dilution.

The key question for investors is whether the improved gross margin and year-over-year revenue growth can continue long enough to offset the company’s operating cost base. Q1 2026 operating expenses still exceeded gross profit by approximately $1.41 million, resulting in a $1.41 million operating loss before other expenses.

Overall, the statements present a mixed picture: revenue and gross-margin trends are encouraging, but persistent losses, negative operating cash flow, declining cash balances, rising debt and share-count expansion remain substantial risks. My Size may need additional capital unless it can materially improve profitability and cash generation in upcoming quarters.